Cyprium Metals (ASX:CYM) reports it has signed an exclusive term sheet with Transamine for US$35 million in respect of a copper cathode offtake secured prepayment facility.
The company reports the offtake prepayment facility is part of the targeted $240 million to $260 million debt funding package to finance the restart of the Nifty Copper Project, which is expected to include senior secured financing and secured offtake financing.
The technical, legal, commercial, and financial due diligence activities have been completed by Transamine, with the focus now turning to completing the offtake and financing documentation for execution. Cyprium reports this is being done in conjunction with the prospective secured senior debt providers.
All of the approvals that are required prior to completion of financing have been received, with the final approval for the amendment to the state agreement required to be submitted post finance.
Addressing the funding, Managing Director Barry Cahill says: “We are very pleased to renew our association with Transamine SA, by entering into an exclusive term sheet for a copper cathode offtake secured prepayment facility. This is part of a fully funded finance package for the restart of the Nifty Copper Project.
The restart project economics remain very robust, and we have continued to make further improvements to the Nifty Copper Project during the financing process.
As all of the required regulatory approvals able to be completed prior to finance have been received, we are looking forward to completing our total funding package so that we can commence executing our Nifty Copper Project restart development plans.”
“We are looking forward to completing our total funding package so that we can commence executing our Nifty Copper Project restart development plans”
The Nifty Copper Mine is located on the western edge of the Great Sandy Desert in the north-eastern Pilbara region of Western Australia, about 330km southeast of Port Hedland. Nifty contains a 2012 JORC Mineral Resource of 940,200 tonnes of contained copper.
Founded in 1953, Transamine is an independent and privately held commodities trading company specialising in non-ferrous raw materials. Transamine is headquartered in Geneva, Switzerland, and has offices throughout key markets including Australia, South Africa, India, the US, and China.
Write to Adam Orlando at Mining.com.au
Images: Cyprium Metals Ltd
